The Setting Every Community Up for Retirement Enhancement (SECURE) Act as well as emerging state-level initiatives could spur growth of the small retirement plan market, and recordkeepers that have been vying for business in the mature large and mid-size plan market are taking notice of a new opportunity.

Room to grow

The small retirement plan market has plenty of room to grow, according to a recent Cerulli Associates retirement report. The firm pointed to research by JP Morgan that suggests less than half of small businesses with $50,000 to $20 million in annual revenue and five to 50 employees offer a 401(k) plan. Nearly two-thirds of smaller employers that do not offer a plan also do not expect to offer one in the future, citing the costs associated with administering a plan, according to the research.